B c d the tax for that year is less than 500 estimated

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Unformatted text preview: from the bond (sinking) fund trust ($60,000) and the net long-term capital gain ($8,000) is taxable (trust) income to Andi Corp., in 1990. Choices "a", "b", and "c" are incorrect, per the above rule. CPA-02239 Type1 M/C 118. CPA-02239 A-D Nov 91 II #47 Corr Ans: D PM#24 R 3-99 Page 15 59 © 2009 DeVry/Becker Educational Development Corp. All rights reserved. Maxixishere Pdf Collection Becker CPA Review, PassMaster Questions Lecture: Regulation 3 In the case of a corporation that is not a financial institution, which of the following statements is correct with regard to the deduction for bad debts? a. Either the reserve method or the direct charge-off method may be used, if the election is made in the corporation's first taxable year. b. On approval from the IRS, a corporation may change its method from direct charge-off to reserve. c. If the reserve method was consistently used in prior years, the corporation may take a deduction for a reasonable addition to the reserve for bad debts. d. A corporati...
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This note was uploaded on 06/14/2013 for the course ACCOUNTING Regulation taught by Professor Becker during the Fall '10 term at Keller Graduate School of Management.

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